Advantage Fixed Assets

Your Guide Through the State Depreciation Maze

Calculating state bonus depreciation can be a full-time job. For an easy, accurate way to comply with depreciation across multiple states—from California bonus depreciation to New York bonus depreciation, rely on Advantage Fixed Assets State Books – your solution to handling complex calculations for non-conforming states that goes far beyond simple “no-bonus” calculations.

State Conformity Resources

THOUGHT LEADERSHIP

Three Ways to Detangle State Conformity

Calculating state depreciation has long been a source of frustration and stress, with tax accountants going cross-eyed staring at complicated spreadsheets while under the looming threat of audits or fines.

Unpacking the Challenges of State Tax Depreciation

As tax practitioners, we sometimes wish states would all follow the federal treatment when it comes to calculating taxable income. But alas, states have a choice to conform or not conform to the Internal Revenue Code, and the result is added complexity. In the area of fixed assets, state non-conformity isn’t as simple as “bonus/no-bonus”, and practitioners need to be aware of the various (and sometimes downright strange) treatment of fixed assets depreciation across the 50 states.

Editors’ Note:Pub. L. 115-97, the 2017 tax act, dramatically altered the Internal Revenue Code of 1986. With respect to I.R.C. § 168(k), changes include expanding the definition of qualified property and allowing full expensing for property placed in service after Sept. 27, 2017, and reducing the percentage that may be expensed after Dec. 31, 2022. I.R.C. § 168(k).

Editors’ Note:Pub. L. 115-97, the 2017 tax act, dramatically altered the Internal Revenue Code of 1986. The act amends I.R.C. § 168(k) by expanding the definition of qualified property and allowing full expensing for property placed in service after Sept. 27, 2017, and reducing the percentage that may be expensed after Dec. 31, 2022. I.R.C. § 168(k).

Editors’ Note:Pub. L. 115-97, the 2017 tax act, dramatically altered the Internal Revenue Code of 1986. With respect to I.R.C. § 168(k), changes include expanding the definition of qualified property and allowing full expensing for property placed in service after Sept. 27, 2017, and reducing the percentage that may be expensed after Dec. 31, 2022. Arizona has a static I.R.C. conformity date of Jan. 1, 2019, for taxable years beginning from and after Dec. 31, 2018, and Jan. 1, 2018, for taxable years beginning from and after Dec. 31, 2017, through Dec. 31, 2018. I.R.C. § 168(k).

Editors’ Note:Pub. L. 115-97, the 2017 tax act, dramatically altered the Internal Revenue Code of 1986. With respect to I.R.C. § 168(k), changes include expanding the definition of qualified property and allowing full expensing for property placed in service after Sept. 27, 2017, and reducing the percentage that may be expensed after Dec. 31, 2022. I.R.C. § 168(k).

California

Corporate: California does not conform to the federal treatment of bonus depreciation. California provides its own set of rules for calculating depreciation and requires an addition modification for bonus depreciation deducted at the federal level. Cal. Rev. & Tax. Code § 24349; CITN CA 5.3.1.2.

Editors’ Note:Pub. L. 115-97, the 2017 tax act, dramatically altered the Internal Revenue Code of 1986. With respect to I.R.C. § 168(k), changes include expanding the definition of qualified property and allowing full expensing for property placed in service after Sept. 27, 2017, and reducing the percentage that may be expensed after Dec. 31, 2022. I.R.C. § 168(k).

Colorado

Editors’ Note:Pub. L. 115-97, the 2017 tax act, dramatically altered the Internal Revenue Code of 1986. With respect to I.R.C. § 168(k), changes include expanding the definition of qualified property and allowing full expensing for property placed in service after Sept. 27, 2017, and reducing the percentage that may be expensed after Dec. 31, 2022. I.R.C. § 168(k).

Editors’ Note:Pub. L. 115-97, the 2017 tax act, dramatically altered the Internal Revenue Code of 1986. With respect to I.R.C. § 168(k), changes include expanding the definition of qualified property and allowing full expensing for property placed in service after Sept. 27, 2017, and reducing the percentage that may be expensed after Dec. 31, 2022. I.R.C. § 168(k).

Delaware

Editors’ Note:Pub. L. 115-97, the 2017 tax act, dramatically altered he Internal Revenue Code of 1986. The act amends I.R.C. § 168(k) by expanding the definition of qualified property and allowing full expensing for property placed in service after Sept. 27, 2017, and reducing the percentage that may be expensed after Dec. 31, 2022. I.R.C. § 168(k).

District of Columbia

Editors’ Note:Pub. L. 115-97, the 2017 tax act, dramatically altered the Internal Revenue Code of 1986. With respect to I.R.C. § 168(k), changes include expanding the definition of qualified property and allowing full expensing for property placed in service after Sept. 27, 2017, and reducing the percentage that may be expensed after Dec. 31, 2022. I.R.C. § 168(k).

Editors’ Note:Pub. L. 115-97, the 2017 tax act, dramatically altered the Internal Revenue Code of 1986. With respect to I.R.C. § 168(k), changes include expanding the definition of qualified property and allowing full expensing for property placed in service after Sept. 27, 2017, and reducing the percentage that may be expensed after Dec. 31, 2022. Florida has a static conformity date, and has passed 2019 Fla. H.B. 7127 conforming to the amended provisions, with certain exceptions. I.R.C. § 168(k).

Editors’ Note:Pub. L. 115-97, the 2017 tax act, dramatically altered the Internal Revenue Code of 1986. With respect to I.R.C. § 168(k), changes include expanding the definition of qualified property and allowing full expensing for property placed in service after Sept. 27, 2017, and reducing the percentage that may be expensed after Dec. 31, 2022. I.R.C. § 168(k).

Georgia has a static conformity date, and has passed 2019 Ga. H.B. 419, conforming to the version of the Internal Revenue Code in effect on Jan. 1, 2019, with certain exceptions.

Hawaii

Editors’ Note:Pub. L. 115-97, the 2017 tax act, dramatically altered the Internal Revenue Code of 1986. With respect to I.R.C. § 168(k), changes include expanding the definition of qualified property and allowing full expensing for property placed in service after Sept. 27, 2017, and reducing the percentage that may be expensed after Dec. 31, 2022. I.R.C. § 168(k).

Editors’ Note:Pub. L. 115-97, the 2017 tax act, dramatically altered the Internal Revenue Code of 1986. The act amends I.R.C. § 168(k) by expanding the definition of qualified property and allowing full expensing for property placed in service after Sept. 27, 2017, and reducing the percentage that may be expensed after Dec. 31, 2022. I.R.C. § 168(k).

Editors’ Note:Pub. L. 115-97, the 2017 tax act, dramatically altered the Internal Revenue Code of 1986. With respect to I.R.C. § 168(k), changes include expanding the definition of qualified property and allowing full expensing for property placed in service after Sept. 27, 2017, and reducing the percentage that may be expensed after Dec. 31, 2022. I.R.C. § 168(k).

Editors’ Note:Pub. L. 115-97, the 2017 tax act, dramatically altered the Internal Revenue Code of 1986. The act amends I.R.C. § 168(k) by expanding the definition of qualified property and allowing full expensing for property placed in service after Sept. 27, 2017, and reducing the percentage that may be expensed after Dec. 31, 2022. I.R.C. § 168(k).

Editors’ Note:Pub. L. 115-97, the 2017 tax act, dramatically altered the Internal Revenue Code of 1986. With respect to I.R.C. § 168(k), changes include expanding the definition of qualified property and allowing full expensing for property placed in service after Sept. 27, 2017, and reducing the percentage that may be expensed after Dec. 31, 2022. I.R.C. § 168(k).

Iowa has a static conformity date, and has passed 2018 Iowa S.F. 2417 conforming, for tax years beginning on or after Jan. 1, 2019, to amendments made by Pub. L. 115-97.

Kansas

Editors’ Note:Pub. L. 115-97, the 2017 tax act, dramatically altered the Internal Revenue Code of 1986. With respect to I.R.C. § 168(k), changes include expanding the definition of qualified property and allowing full expensing for property placed in service after Sept. 27, 2017, and reducing the percentage that may be expensed after Dec. 31, 2022. I.R.C. § 168(k).

Kentucky

Corporate: Kentucky does not conform to the federal treatment of bonus depreciation. For property placed in service after Sept. 10, 2001, Kentucky conforms to the depreciation deduction under I.R.C. § 168 as was in effect on Dec. 31, 2001. Ky. Rev. Stat. Ann. § 141.0101(16)(a), as amended by2019 Ky. H.B. 354, effective for taxable years beginning on or after Jan. 1, 2019; CITN KY 5.3.1.2.

Editors’ Note:Pub. L. 115-97, the 2017 tax act, dramatically altered the Internal Revenue Code of 1986. With respect to I.R.C. § 168(k), changes include expanding the definition of qualified property and allowing full expensing for property placed in service after Sept. 27, 2017, and reducing the percentage that may be expensed after Dec. 31, 2022. I.R.C. § 168(k).

Editors’ Note:Pub. L. 115-97, the 2017 tax act, dramatically altered the Internal Revenue Code of 1986. With respect to I.R.C. § 168(k), changes include expanding the definition of qualified property and allowing full expensing for property placed in service after Sept. 27, 2017, and reducing the percentage that may be expensed after Dec. 31, 2022. I.R.C. § 168(k).

Editors’ Note:Pub. L. 115-97, the 2017 tax act, dramatically altered the Internal Revenue Code of 1986. The act amends I.R.C. § 168(k) by expanding the definition of qualified property and allowing full expensing for property placed in service after Sept. 27, 2017, and reducing the percentage that may be expensed after Dec. 31, 2022. I.R.C. § 168(k).

Editors’ Note:Pub. L. 115-97, the 2017 tax act, dramatically alteredthe Internal Revenue Code of 1986. With respect to I.R.C. § 168(k), changes include expanding the definition of qualified property and allowing full expensing for property placed in service after Sept. 27, 2017, and reducing the percentage that may be expensed after Dec. 31, 2022. I.R.C. § 168(k).

Editors’ Note:Pub. L. 115-97, the 2017 tax act, dramatically alteredthe Internal Revenue Code of 1986. The act amends I.R.C. § 168(k) by expanding the definition of qualified property and allowing full expensing for property placed in service after Sept. 27, 2017, and reducing the percentage that may be expensed after Dec. 31, 2022. I.R.C. § 168(k)

Editors’ Note:Pub. L. 115-97, the 2017 tax act, dramatically alteredthe Internal Revenue Code of 1986. With respect to I.R.C. § 168(k), changes include expanding the definition of qualified property and allowing full expensing for property placed in service after Sept. 27, 2017, and reducing the percentage that may be expensed after Dec. 31, 2022. I.R.C. § 168(k).

Editors’ Note:Pub. L. 115-97, the 2017 tax act, dramatically alteredthe Internal Revenue Code of 1986. With respect to I.R.C. § 168(k), changes include expanding the definition of qualified property and allowing full expensing for property placed in service after Sept. 27, 2017, and reducing the percentage that may be expensed after Dec. 31, 2022. I.R.C. § 168(k).

Editors’ Note:Pub. L. 115-97, the 2017 tax act, dramatically alteredthe Internal Revenue Code of 1986. With respect to I.R.C. § 168(k), changes include expanding the definition of qualified property and allowing full expensing for property placed in service after Sept. 27, 2017, and reducing the percentage that may be expensed after Dec. 31, 2022. I.R.C. § 168(k).

Editors’ Note:Pub. L. 115-97, the 2017 tax act, dramatically alteredthe Internal Revenue Code of 1986. With respect to I.R.C. § 168(k), changes include expanding the definition of qualified property and allowing full expensing for property placed in service after Sept. 27, 2017, and reducing the percentage that may be expensed after Dec. 31, 2022. I.R.C. § 168(k).

Montana

Editors’ Note:Pub. L. 115-97, the 2017 tax act, dramatically alteredthe Internal Revenue Code of 1986. With respect to I.R.C. § 168(k), changes include expanding the definition of qualified property and allowing full expensing for property placed in service after Sept. 27, 2017, and reducing the percentage that may be expensed after Dec. 31, 2022. I.R.C. § 168(k).

Editors’ Note:Pub. L. 115-97, the 2017 tax act, dramatically alteredthe Internal Revenue Code of 1986. With respect to I.R.C. § 168(k), changes include expanding the definition of qualified property and allowing full expensing for property placed in service after Sept. 27, 2017, and reducing the percentage that may be expensed after Dec. 31, 2022. I.R.C. § 168(k).

Nevada

Corporate: Nevada does not impose a corporate income tax.

Editors’ Note:Pub. L. 115-97, the 2017 tax act, dramatically alteredthe Internal Revenue Code of 1986. With respect to I.R.C. § 168(k), changes include expanding the definition of qualified property and allowing full expensing for property placed in service after Sept. 27, 2017, and reducing the percentage that may be expensed after Dec. 31, 2022. I.R.C. § 168(k).

Editors’ Note:Pub. L. 115-97, the 2017 tax act, dramatically alteredthe Internal Revenue Code of 1986. The act amends I.R.C. § 168(k) by expanding the definition of qualified property and allowing full expensing for property placed in service after Sept. 27, 2017, and reducing the percentage that may be expensed after Dec. 31, 2022. I.R.C. § 168(k)

Editors’ Note:Pub. L. 115-97, the 2017 tax act, dramatically altered the Internal Revenue Code of 1986. With respect to I.R.C. § 168(k), changes include expanding the definition of qualified property and allowing full expensing for property placed in service after Sept. 27, 2017, and reducing the percentage that may be expensed after Dec. 31, 2022. I.R.C. § 168(k).

Editors’ Note:Pub. L. 115-97, the 2017 tax act, dramatically altered the Internal Revenue Code of 1986. With respect to I.R.C. § 168(k), changes include expanding the definition of qualified property and allowing full expensing for property placed in service after Sept. 27, 2017, and reducing the percentage that may be expensed after Dec. 31, 2022. I.R.C. § 168(k).

Editors’ Note:Pub. L. 115-97, the 2017 tax act, dramatically alteredthe Internal Revenue Code of 1986. The act amends I.R.C. § 168(k) by expanding the definition of qualified property and allowing full expensing for property placed in service after Sept. 27, 2017, and reducing the percentage that may be expensed after Dec. 31, 2022. I.R.C. § 168(k)

New York City

Corporate: New York City does not conform to the federal treatment of bonus depreciation, because New York City has enacted legislation decoupling from I.R.C. § 168(k). New York City requires an addback to federal taxable income for any bonus depreciation taken at the federal level. However, New York City allows for bonus depreciation of qualified resurgence zone property and qualified New York Liberty Zone property. N.Y.C. Admin. Code § 11-641(b)(13); CITN NYC 5.3.1.2.

Editors’ Note:Pub. L. 115-97, the 2017 tax act, dramatically alteredthe Internal Revenue Code of 1986. The act amends I.R.C. § 168(k) by expanding the definition of qualified property and allowing full expensing for property placed in service after Sept. 27, 2017, and reducing the percentage that may be expensed after Dec. 31, 2022. I.R.C. § 168(k).

Editors’ Note:Pub. L. 115-97, the 2017 tax act, dramatically alteredthe Internal Revenue Code of 1986. With respect to I.R.C. § 168(k), changes include expanding the definition of qualified property and allowing full expensing for property placed in service after Sept. 27, 2017, and reducing the percentage that may be expensed after Dec. 31, 2022. I.R.C. § 168(k).

Editors’ Note:Pub. L. 115-97, the 2017 tax act, dramatically alteredthe Internal Revenue Code of 1986. With respect to I.R.C. § 168(k), changes include expanding the definition of qualified property and allowing full expensing for property placed in service after Sept. 27, 2017, and reducing the percentage that may be expensed after Dec. 31, 2022. I.R.C. § 168(k).

Editors’ Note:Pub. L. 115-97, the 2017 tax act, dramatically alteredthe Internal Revenue Code of 1986. With respect to I.R.C. § 168(k), changes include expanding the definition of qualified property and allowing full expensing for property placed in service after Sept. 27, 2017, and reducing the percentage that may be expensed after Dec. 31, 2022. I.R.C. § 168(k).

Editors’ Note:Pub. L. 115-97, the 2017 tax act, dramatically alteredthe Internal Revenue Code of 1986. With respect to I.R.C. § 168(k), changes include expanding the definition of qualified property and allowing full expensing for property placed in service after Sept. 27, 2017, and reducing the percentage that may be expensed after Dec. 31, 2022. I.R.C. § 168(k).

Editors’ Note:Pub. L. 115-97, the 2017 tax act, dramatically altered the Internal Revenue Code of 1986. The act amends I.R.C. § 168(k) by expanding the definition of qualified property and allowing full expensing for property placed in service after Sept. 27, 2017, and reducing the percentage that may be expensed after Dec. 31, 2022. Oregon has a static conformity date of Dec. 31, 2018, but has a rolling reconnect for provisions related to taxable income. I.R.C. § 168(k).

Editors’ Note:Pub. L. 115-97, the 2017 tax act, dramatically altered the Internal Revenue Code of 1986. The act amends I.R.C. § 168(k) by expanding the definition of qualified property and allowing full expensing for property placed in service after Sept. 27, 2017, and reducing the percentage that may be expensed after Dec. 31, 2022. I.R.C. § 168(k)

Rhode Island

Corporate: Rhode Island does not conform to the federal treatment of bonus depreciation and requires an addition modification for bonus depreciation taken at federal level. R.I. Gen. Laws § 44-61-1; CITN RI 5.3.1.2.

Editors’ Note:Pub. L. 115-97, the 2017 tax act, dramatically altered the Internal Revenue Code of 1986. With respect to I.R.C. § 168(k), changes include expanding the definition of qualified property and allowing full expensing for property placed in service after Sept. 27, 2017, and reducing the percentage that may be expensed after Dec. 31, 2022. I.R.C. § 168(k).

South Carolina

Editors’ Note:Pub. L. 115-97, the 2017 tax act, dramatically altered the Internal Revenue Code of 1986. The act amends I.R.C. § 168(k) by expanding the definition of qualified property and allowing full expensing for property placed in service after Sept. 27, 2017, and reducing the percentage that may be expensed after Dec. 31, 2022. I.R.C. § 168(k).

South Dakota

Corporate: South Dakota does not impose a corporate income tax.

Editors’ Note:Pub. L. 115-97, the 2017 tax act, dramatically altered the Internal Revenue Code of 1986. With respect to I.R.C. § 168(k), changes include expanding the definition of qualified property and allowing full expensing for property placed in service after Sept. 27, 2017, and reducing the percentage that may be expensed after Dec. 31, 2022. I.R.C. § 168(k).

Editors’ Note:Pub. L. 115-97, the 2017 tax act, dramatically altered the Internal Revenue Code of 1986. With respect to I.R.C. § 168(k), changes include expanding the definition of qualified property and allowing full expensing for property placed in service after Sept. 27, 2017, and reducing the percentage that may be expensed after Dec. 31, 2022. I.R.C. § 168(k).

Editors’ Note:Pub. L. 115-97, the 2017 tax act, dramatically altered the Internal Revenue Code of 1986. The act amends I.R.C. § 168(k) by expanding the definition of qualified property and allowing full expensing for property placed in service after Sept. 27, 2017, and reducing the percentage that may be expensed after Dec. 31, 2022. I.R.C. § 168(k).

Editors’ Note:Pub. L. 115-97, the 2017 tax act, dramatically altered the Internal Revenue Code of 1986. With respect to I.R.C. § 168(k), changes include expanding the definition of qualified property and allowing full expensing for property placed in service after Sept. 27, 2017, and reducing the percentage that may be expensed after Dec. 31, 2022. I.R.C. § 168(k).

Vermont

Editors’ Note:Pub. L. 115-97, the 2017 tax act, dramatically altered the Internal Revenue Code of 1986. With respect to I.R.C. § 168(k), changes include expanding the definition of qualified property and allowing full expensing for property placed in service after Sept. 27, 2017, and reducing the percentage that may be expensed after Dec. 31, 2022. I.R.C. § 168(k).

Editors’ Note:Pub. L. 115-97, the 2017 tax act, dramatically altered the Internal Revenue Code of 1986. For tax years beginning after Dec. 31, 2017, and before Jan. 1, 2026, the act amends I.R.C. § 165 to limit the personal casualty loss itemized deduction under 165(h) to property losses incurred as a result of a federally-declared disaster, and change the definition of losses from wagering transactions under 165(d) to include any otherwise allowable deduction incurred in carrying on wagering transactions. I.R.C. § 165.

Washington

Corporate: Washington does not impose a corporate income tax.

Editors’ Note:Pub. L. 115-97, the 2017 tax act, dramatically altered the Internal Revenue Code of 1986. With respect to I.R.C. § 168(k), changes include expanding the definition of qualified property and allowing full expensing for property placed in service after Sept. 27, 2017, and reducing the percentage that may be expensed after Dec. 31, 2022. I.R.C. § 168(k).

West Virginia

Editors’ Note:Pub. L. 115-97, the 2017 tax act, dramatically altered the Internal Revenue Code of 1986. The act amends I.R.C. § 168(k) by expanding the definition of qualified property and allowing full expensing for property placed in service after Sept. 27, 2017, and reducing the percentage that may be expensed after Dec. 31, 2022. I.R.C. § 168(k).

Editors’ Note:Pub. L. 115-97, the 2017 tax act, dramatically altered the Internal Revenue Code of 1986. With respect to I.R.C. § 168(k), changes include expanding the definition of qualified property and allowing full expensing for property placed in service after Sept. 27, 2017, and reducing the percentage that may be expensed after Dec. 31, 2022. I.R.C. § 168(k).

Wyoming

Corporate: Wyoming does not impose a corporate income tax.

Editors’ Note:Pub. L. 115-97, the 2017 tax act, dramatically altered the Internal Revenue Code of 1986. With respect to I.R.C. § 168(k), changes include expanding the definition of qualified property and allowing full expensing for property placed in service after Sept. 27, 2017, and reducing the percentage that may be expensed after Dec. 31, 2022. I.R.C. § 168(k).